SAN DIEGO - American Assets Trust, Inc. (NYSE: NYSE:AAT), a full-service real estate investment trust (REIT), has announced the pricing of a public offering of senior notes valued at $525 million with a 6.150% interest rate, maturing on October 1, 2034. The notes, guaranteed by the company, were priced at 99.671% of their principal amount.
The offering is set to close on September 17, 2024, subject to customary closing conditions. The operating partnership of American Assets Trust plans to allocate the net proceeds to repay existing debt, including Series B and C Senior Guaranteed Notes, and to reduce the outstanding balance on its revolving credit facility. Remaining funds will be used for working capital and other corporate purposes.
Joint book-running managers for this transaction are Wells Fargo Securities, Mizuho, and PNC Capital Markets LLC. The offering is made under an existing shelf registration statement and prospectus, along with a preliminary prospectus supplement filed with the Securities and Exchange Commission (SEC).
American Assets Trust, with over 55 years in the real estate sector, manages a diverse portfolio including office, retail, residential properties, and a mixed-use property across select U.S. markets. Its real estate business originated with American Assets, Inc., founded in 1967.
The press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially. Factors that might influence the company's performance include economic and real estate market conditions, tenant lease behaviors, interest rate fluctuations, operational costs, and the ability to secure necessary financing, among others.
This news is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the securities described. The final prospectus supplement and accompanying prospectus will be available from the managing book-runners upon request.
The company cautions that the forward-looking statements in the press release are based on current expectations and assumptions and are not guarantees of future performance. For more detailed information, the company refers to its SEC filings, including its most recent annual report on Form 10-K and subsequent documents.
InvestingPro Insights
As American Assets Trust, Inc. (NYSE: AAT) moves forward with its public offering of senior notes, investors may find it beneficial to consider the company's financial health and market performance. With a market capitalization of $2 billion USD and a P/E ratio standing at 29.17, AAT is trading at a valuation that reflects investor confidence. The company's commitment to shareholder returns is evident with a dividend yield of 5.25%, and it has consistently raised its dividend for the last 3 consecutive years, showcasing a stable income stream for investors.
Moreover, AAT's solid gross profit margin of 64.17% over the last twelve months as of Q2 2024 suggests efficient operations and the ability to turn revenue into profit. A noteworthy InvestingPro Tip indicates that AAT has maintained dividend payments for 14 consecutive years, reinforcing its reputation as a reliable dividend-paying stock. Additionally, investors have enjoyed a robust return over the last three months, with a price total return of 20.5%. It's also worth noting that analysts predict the company will be profitable this year, which could bode well for future financial stability and growth.
For those considering adding AAT to their portfolio, there are more InvestingPro Tips available, providing deeper insights into the company's financial metrics and market position. Visit https://www.investing.com/pro/AAT to explore additional tips and make more informed investment decisions.
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